Silver is enjoying a rare positive start to the week with the price attempting to climb back above $19 an ounce.
A slight weakening in the US dollar has allowed both equity and commodity markets to enjoy a brief bit of respite after a punishing few months. With expectations now switching back to the Federal Reserve hiking increase rates by “just” 75 basis points rather than the 100 basis points that was being mooted last week, this has seen the dollar fall back from its record high and caused all those assets priced in the US currency, including silver, to gain as a result.
Live Silver Price – $/oz
Expectations on how high or for how long silver can gain must be tempered by the fact that a 75 basis point hike later this month by the Fed, the second in consecutive months, still represents a huge increase in recent history, while the silver’s spectacular fall from investors’ favour in recent months needs more than a slight weakening in the dollar for it regain their love.
In the short-term, silver holders will be hoping that there is sufficient momentum today for the metal to climb back above $19 an ounce and for that level to become the support against future bearish factors.
After a brutal three months, silver must surely be close to reaching its bottom and after a false dawn last week, perhaps today’s gain is finally it?
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